Pakistan Economy - News & Updates

[Omar1984]

‘Collaboration with foreign firms to boost oil, gas potential’
​

ISLAMABAD: Federal Minister for Petroleum and Natural Resources, Syed Naveed Qamar has said involvement of Pakistani companies in partnership with foreign companies is one of the keys to unlocking the potential of Oil and gas reserves.

The minister expressed these views to the ambassador of Federal Republic of Germany Michael Koch, who called on him to the minister, revealed a press release issued today. Both the leader discussed the matters pertaining to bilateral interests particularly investment opportunities in Pakistan came under discussion during the meeting.

Qamar said that in view of the country’s huge energy needs, and with supplies finding it difficult to keep pace with demands, a multi-pronged approach to promote efficacious utilization of precious natural resource and at the same time fast-tracking exploration and production in the indigenous upstream oil and gas sector and through imports was being vigorously pursued.

Dr Koch also informed the minister of the vast experience German companies had in various processes including exploration, extraction and transportation.

Discussing the prospects of foreign investments in Pakistan, the minister underlined that his Ministry viewed increased involvement of Pakistani companies in partnership with foreign companies, coupled with the involvement of the local stakeholders, to be one of the keys to unlocking the potential of reserves for the benefit of the country. He said that foreign companies should come together and collaborate with public sector companies to promote transfer of know-how, generate employment and community development. The minister said that the government as well as his ministry would extend all the assistance necessary to facilitate investors.

Meanwhile, a delegation comprising of senior management of OMV Exploration and Production also meet today with the minister, reveled another press statement issued today. Dr George Watchel, the incumbent General Manager of the company introduced the incoming G.M., Dr. Elmar Collins to the minister. While reviewing the company’s progress in Pakistan over the years the prospects of upcoming projects came under discussion during the meeting. Appreciating Dr Watchel for his invaluable contribution in exploratory work, particularly in the gas sector in Pakistan since many years, Syed Naveed Qamar also welcomed Dr Elmar to office. He said that investment opportunities for E&P companies existed in the country’s upstream oil and gas sector and all the necessary assistance to facilitate investors’ initiatives would be extended. staff report

 

[Omar1984]

IMF praises Pakistan’s economic performance
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* Zardari says ROZs in FATA will help generate economic activity
* PM thanks IMF for helping Islamabad overcome economic challenges

Staff Report

ISLAMABAD: Pakistan has done well despite the global recession, the war on terror and the massive displacement of people from Swat and Malakand, which impeded economic activity, head of the International Monetary Fund Mission for Pakistan, Adnan Mazarei, said on Monday. He, along with IMF Resident Representative Paul Ross had called on President Asif Ali Zardari and expressed appreciation for Pakistan’s economic performance.

He said the international community had great sympathy for the country’s problems and appreciated the major progress made by it in various ways. Briefing the media after the meeting, the president’s spokesman Farhatullah Babar said the head of the IMF mission had appreciated Islamabad’s efforts to stabilise the country’s economy.

More economic activity: The president said the establishment of Reconstruction Opportunity Zones (ROZs) in the Tribal Areas would help generate economic activity while alleviating poverty and generating employment. He also stressed the need for opening up US and EU markets to Pakistani goods.

The two men also called on Prime Minister Yousaf Raza Gilani at the PM’s House. Talking about the government’s achievements in successfully increasing the tax to GDP ratio from 8.8 to 10.6 percent in one year, the PM expressed his firm commitment to enhance the ratio to 15 percent over the next five years by broadening the tax base.

The prime minister expressed satisfaction with the overall economic situation in the country, saying that all economic indicators had started showing positive trends after the government’s timely intervention and the introduction of corrective measures.

Help appreciated: While appreciating the IMF for its help in substantiating Islamabad’s efforts in overcoming economic challenges, Gilani told Mazarei about his government’s approach to address the country’s problems including poverty, the power shortage, limited access to public services and extremism through a combination of administrative, political and security measures.

 

[ejaz007]

Accord to generate power from Thar coal inked
Updated at: 0530 PST, Wednesday, September 09, 2009


KARACHI: Sindh government and Engro Power Gen Ltd on Tuesday inked an agreement for a joint venture on 60/40 basis to exploit Thar Coal for energy generation,

CEO Engro and a representative of Sindh government signed the agreement at a ceremony held at the Chief Minister House here on Tuesday.

Under the agreement, the first project of the joint venture would be an open cast mining facility with an annual capacity of 3.5 to 6.5 million tones for which a detailed feasibility study would be carried out soon.

Engro Power Gen Ltd has been given the responsibility to carry out a feasibility report on an approximately 600-1000MW Thar Coal-based power plant.

It was agreed that a company proposed to be called “Sindh Engro Coal Mining Company” to be incorporated with initial sufficient capital to complete the detailed feasibility study.

Engro Power Gen Ltd and the government of Sindh will be equity partners in 40/60 ratio (60 per cent Engro) in the mining portion of the project.

Detailed feasibility study to take 18 months and a future 6-12 months for financial close of the project.

The company will ensure that adequate skill development programme are put in place along with other training facilities for locals of the area. Two per cent profit before tax to be spent on corporate social responsibility related activities in Thar.

Board of Directors comprises of 10 directors in 60:40 ratio and the Chairman to be nominee of government of Sindh and CEO of Engro.

It may be mentioned here that Sindh Cabinet had granted approval to the said joint venture according to which 1.1 billion dollars will be invested on the mining side and 2.2 billion dollars would be invested in power side.

According to cabinet decision, the construction work of airport at Islamkot has been started while Railways was busy in preparation of feasibility report and study is being carried out to provide 250-cusec water to Islamkot and Wapda was studying for transmission of electricity.

Accord to generate power from Thar coal inked

 

[Omar1984]

Strategic Trade Policy Framework launched
​

ISLAMABAD: In order to address the challenges confronting Pakistan on the economic front, Ministry of Commerce launched a comprehensive three years Strategic Trade Policy Framework (2009-12) document in a ceremony here at a local hotel.

Makhdoom Muhammad Amin Fahim, Commerce Minister graced the occasion as Chief Guest.

This framework was produced to cater to the need for developing and effectively implementing a national export competitiveness program. It would provide the overarching reference to different trade measures by the Ministry of Commerce and other Ministries from time to time. The overall objective of the Strategic Trade Policy Framework is to achieve sustainable high economic growth through exports with the help of policy and support interventions by the government, industry, civil society and donors.

Additionally, Secretary Khwaja Naeem in his welcome address showed deep pleasure at the launching of the STPF, which has been formulated by the Ministry of Commerce with the active collaboration of the Pakistan Institute of Trade and Development (PITAD) within a short span of time. Dr. Safdar Sohail, Director General, Pakistan Institute of Trade and Development made a presentation highlighting features of the Trade Policy. Secretary Commerce thanked everybody who contributed in making the document possible.

The Commerce Minister appreciated the fact that the Ministry of Commerce has come up with a mid-term strategic response identifying the challenges and suggesting policy interventions. He said “the world is experiencing one of the most severe recessions in the post war period”.

He further stated “Our exports have suffered a decline over the last one year and has been beset with issues like low productivity and slow diversification of export products and markets”. In this backdrop, to formulate such a strategy in order to remain firm in these difficult economic times, to keep focused on our strengths, and to convert challenges into workable opportunities is a matter of great pleasure and pride for us.”

 

[Omar1984]

Federal govt to charge 100% sugar price as penalty
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ISLAMABAD: Federal government is expected to charge 100 percent price of sugar with 25 percent of the price as a penalty from those sugar mills which would sign selling contract with Trading Corporation of Pakistan (TCP) but would refuse to deliver the commodity to it when required.

Economic Coordination Committee (ECC) of the Cabinet has allowed Trading Corporation of Pakistan to enhance its buffer stock of sugar at one million tonnes to avoid sugar crisis in months to come.

The government has also allowed sugar mills to import 350,000 tonnes of raw sugar in early 2010 to meet the country's sugar needs. There would be maintained at 5 percent price differential between import raw sugar and sugar cane price, by making adjustments in taxes and duties so that interest of the cane growers are safeguarded. Sugar produced from this raw sugar would not be less that Rs 50 per kg and the sugar prices to remain at higher side, he maintained.

Salman Ghani, Federal Secretary Commerce here on Tuesday presented these details before the National Assembly Standing Committee of Commerce and informed that penalty clause of the sugar procurement contract of the Trading Corporation of Pakistan is being amended.

Chaired by Khurran Dastgir Khan, MNA at parliament house committee meeting analysed the role of Trading Corporation of Pakistan in recent sugar crisis.

Makhdoom Amin Fahim, Federal Minister for Commerce and Secretary Commerce and Saeed Ahmed Khan, Chairman Trading Corporation of Pakistan were present in the meeting to respond to the queries of the members.

Secretary Commerce and TCP Chairman successfully pleaded their case and have managed to convince the committee that TCP had actually no role in sugar crisis and acted as per its defined role under ECC decisions.

They informed the committee that TCP has implemented ECC decision regarding import of 2 lakh metric tonnes of sugar through staggered in manageable tender size in four installments. First tender was opened for import of 25,000 MT sugar at $451.45 per MT, second tender was for import of 50,000 MT sugar at $474 per MT and third tender for 50,000 and fourth and final tender for import of 75,000 MT sugar at $638 per MT was released in April 2009. It was informed to the committee that so far 83,283 MT sugar has already arrived in the country and remaining is in pipeline and will arrive by October 7, 2009.

It was further informed to the committee that TCP did not cancel but put on hold the tenders on the direction of sugar advisory board and Ministry of Industries and Production. When TCP received intimation from the said two forums it managed to import sugar at the same price within fixed time frame without causing any delay.

They informed the committee that Tandalianwala sugar mills had refused to release their stock of sugar during the raids conducted by government of Pakistan. However, this issue was resolved during August 4 to August 11 by mutual consultation. Similarly, when Peshawar High Court ordered for sale of sugar in NWFP's sugar mills within NWFP's limit, it caused sugar shortages in Sindh and Balochistan

Briefing the committee on future sugar forecast, the officials informed the committee that by the end of September sugar stock with TCP to be at 237,000. Some 40,000 MT sugar is to be procured from local sugar mills. Similarly, 40,000 MT sugar is to be procured in November of which some 10,000 MT to be procured locally and 30,000 to be imported. Sugar stock by the end of November 2009 is to be 155,723 MT.

The Committee members were not satisfied with the details and information submitted by the commerce and TCP officials however, there was a broad consensus in the committee that TCP was not wholly responsible for the entire sugar crisis and many other stakeholders are equally responsible for it.

Kashmala Tariq, MNA was of the view that the government was implicating sugar mills in hoarding alike allegations and taking action against mills belonging to the opposition parties however, no action have yet been taken against any sugar mill that have not sold sugar to TCP which constitutes mainly the sugar mills of ruling elite.

 

[Omar1984]

TCP has received 83,283 metric tonnes of sugar only
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ISLAMABAD: Trading Corporation of Pakistan (TCP) on Tuesday informed the National Assembly’s Standing Committee on Commerce that it had received only 83,283 metric tonnes of sugar to-date out of the 200,000 tonnes that the ECC had ordered in February, 2009. The Standing Committee met here under the Chairmanship of engineer, Khurram Dastgir Khan, MNA and Federal Minister for Commerce, Makhdoom Amin Fahim was also present on the occasion. The Committee has censured TCP for aggravating the sugar crisis through a grievous delay in importing required sugar stocks, thereby inflicting severe hardships on people and causing a loss of millions of dollars to the government. The members pointed out that all efforts of the government to provide sugar at low cost have failed dismally and millions people are queuing up all day for sugar, which is not to be found in most Utility Stores. TCP was complicit in collusion between powerful government figures, hoarders and mill owners to fleece the poor, said a statement issued by the National Assembly Secretariat. The Committee reprimanded TCP for a two-month delay in finalizing a sugar tender of 50,000 tonnes that TCP had opened in April 2009. Secretary Commerce ascribed responsibility for delay on a price verification committee comprising of himself, Secretary Industries and Secretary MINFA. The Committee found the Ministry response to be inadequate and decided to form a sub-Committee to investigate this issue more thoroughly. It also discussed the Insurance (Amendment) Bill 2008 and recommended unanimously to the Ministry that the law should be amended to bring re-insurance brokers under government regulation. The Committee heard from stakeholders’ private insurers, state-run insurance companies and Pakistani re-insurance brokers. Further discussion on the sugar crisis is to be done in the next meeting of the Committee. The Secretary Commerce informed the Committee that the Ministry intended to withdraw the said bill in the next session of the National Assembly. MNAs Mrs. Yasmeen Rehman, Nawab Abdul Ghani Talpur, Mrs. Tahira Aurangzeb, Ms. Shireen Arshad Khan, Mrs. Kashmala Tariq, Mrs. Jamila Gillani, Chaudhry Iftikhar Nazir, Nauman Islam Sheikh, Haji Muhammad Akram Ansari, Hamid Yar Hiuraj and Iqbal Muhammad Ali Khan attended the meeting. app

 

[Omar1984]

POL sales up 19.35% on local demand
​

KARACHI: Oil sales in Pakistan posted a huge increase of 19.35 percent as unveiled by the Oil Marketing Companies (OMCs) numbers for July and August 2009-10.

Total POL products volume (excl. non-energy) recorded 3.56 million tonnes in two months against 2.98 million tonnes in two months 2008-09.

Local refineries contributed 1.4 million tonnes (only 40 percent of total) whereas remaining 60 percent of the consumption was met through imports (average 74 percent were imports for FO and 58 percent for HSD in 2MFY10 against 57 percent and 52 percent in 2MFY09 respectively).

An increasing number of the local oil consumption demand is being imported which exposes the country to another price risk which is being built slowly and gradually in the form of rising int’l oil and commodity prices – inter-corporate debt being the major culprit in this regard.

The Black Oil products (FO & LDO) consumption rose massively by 36 percent on year-on-year basis, which was responsible for more than halve of the overall jump in growth in 2MFY10 (55 percent contribution to the total rise).

FO and LDO consumption shot up and declined by 37 percent and 20 percent YoY, respectively in 2MFY10 while their combined volume stood at 1.68 million tonnes in 2MFY10 (47 percent of total vol.) against 1.24 million tonnes (41 percent of total) in 2MFY09).

White Oil products also contributed with an increase of 7.4 percent YoY with total volume of 1.88 million tonnes in 2MFY10. FO increase came as prices stand 31 percent down on yearly basis standing at Rs 44,692 per tonne which however aggravated Pepco, Hubco, Kapco and other IPPs’ cash positions (high generation cost and low reimbursement), due to acute power shortage in the country.

The decline in LDO sales was recorded due to the rainy season observed, which rendered less demand for the product in agricultural activities. FO and HSD contributed 78 percent of the total growth during 2MFY10.

During 2MFY10, Mogas’s huge increase of 41 percent YoY can be attributed to reduced price differential from alternates like Compress Natural Gas (CNG) during 2MFY10 as retail prices hovered low on YoY basis coupled with lower smuggling from Iran etc.

Slight growth of 0.1 percent YoY in HSD (37 percent of total vol.) came only on the back of its increased use in transportation and household power generators due to electricity needs. Excluding HSD & MS, White Oil products - HOBC, JP-8, JP-1 & Kerosene - witnessed volume growth of 16 percent YoY to 254,000 tonnes.

Record POL growth of 39 percent YoY in Aug 09 was observed led by skyrocketing FO sales.

During Aug09, POL consumption punched in a solid 39 percent YoY growth mainly due to record growth in Black Oil of 49 percent YoY (FO 49 percent YoY, 6 percent MoM and LDO 19 percent YoY, 74 percent MoM) and White Oil of 31 percent (mainly by HSD 27 percent, MS 60 percent YoY). Sharp increase in LDO consumption was witnessed owing to lower MoM retail prices.

The government price pass-on on regulated products coupled with lower differential with the alternates (CNG/LPG) also impacted HSD and Mogas volumes positively as they grew by 15 percent and 22 percent MoM, respectively in August 2009.

 

[Omar1984]

Pak-Turkey cooperation to benefit both countries
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ISLAMABAD: Joint ventures in processing, manufacturing and export of ceramic tiles, marble and other precious stones by Pakistan and Turkey would produce plenty of beneficial results for both countries.

President, Islamabad Chamber of Commerce & Industry (ICCI), Mian Shaukat Masud, expressed these views during a meeting between two member business delegation of Turkey of ceramic tiles and marble field, M/s. Ozlem Dogan and H. Noyan Altin who called on him at the ICCI.

He said that in Pakistan there was an increasing demand for machines manufacturing marble and granite as the country was home to world’s second largest marble and granite reserves.

The President added that we are currently using equipment imported from Germany for the processing of these stones. Noting that Turkey was one of the few big manufacturers of ceramic tiles, marble and granite processing equipment, Pakistan can establish close relations in this field with Turkey and could start procuring processing machines from it. staff report

 

[Omar1984]

Pakistan-Iran trade crosses $1 billion figure
​

ISLAMABAD/DHAKA (APP) - The bilateral trade between Pakistan and Iran has crossed the figure of US$1 billion for the first time and has increased from 773.53 million in 2007-08 to US $1,251.37 million in 2008-09.
According to a press statement received here from Embassy of Pakistan in Tehran, during the past years, Pakistan-Iran economic and trade relations have been continuously over-shadowed by several political and non political obstacles and their trade relations were not reflective of the true potentials.
However, the statement added, with the coming to power of present government in Pakistan, the situation has started improving.
During the last one and a half year, President Asif Ali Zardari has twice visited Iran, the statement said adding that similarly, Iranian President Mahmoud Ahmadinejad also visited Islamabad.
These visits have paved the way for further promotion of trade and economic relations between the two countries.
The two governments have taken several steps to improve bilateral cooperation in the arena of trade and economy.
Pakistan exports to Iran have shown an increasing trend which is very promising for its economy, the statement said adding that the exports have increased from US$214.20 million in 2007-08 to US$399.04 million in 2008-09, showing an increase of 86pc.
Due to the initiative of the Democratic Government in December, 2008, Iran agreed to provide 60,000 barrels of crude oil per day on 90 days interest free deferred payment.
Now Pakistan’s import have increased from 15,000 barrels per day (July 2008) to 50,000 barrels per day July 2009, accounting for 33pc of Pakistan’s crude oil imports.
Meanwhile, Chinese Ambassador Luo Zhaohui said, "Pakistan and China, tied together by time tested cordial relations in all spheres of life, will take strides to explore all possible avenues leading to increased investment opportunities in power as well as business sectors". He expressed these views while addressing a ceremony to celebrate 58th anniversary of Pakistan-China diplomatic relations organized by Pak-China Friendship Association (PCFA) NWFP here.
The ambassador said the presence of Chinese entrepreneurs in the ceremony showed that the Chinese people were keen to exploit all opportunities in economic sector.
He said we always stood by Pakistan in every difficult situation and reiterated that they would continue this cooperation in future.
He said China has been extending all possible cooperation in hydel or road projects and despite law and order situation in Frontier province, the Chinese workers had never suspended work on different ongoing projects.

 

[Omar1984]

Pakistan signs several MoUs with Chinese companies
​

KARACHI: Pakistan has signed a large number of memorandums of understanding (MoU) with various organisations in China during the visit of President Asif Ali Zardari to facilitate investment, trade, transfer of technology and knowledge sharing between the two countries.

This was stated by the Chairman Board of Investment (BoI) Saleem H Mandviwalla.

Giving details, he said that a MoU was inked on cooperation in the field of drug regulation between Drug Control Organization, Government of Pakistan and State Food and Drug Administration of People’s Republic of China.

BoI has signed MoU on investment promotion cooperation with Investment Promotion Agency of the Ministry of Commerce of the People’s Republic of China.

Sindh Agriculture University (SAU) Tandojam has signed MoU with South China Agricultural University (SCAU) Guangzhou, China for cooperation in agriculture production and research.

Memorandum of Understanding on Cooperation on River Fisheries and Related technologies between the Department of Fisheries, Government of Sindh Islamic Republic of Pakistan and Pearl River Fisheries Research institute of Chinese Academy of Fishery Sciences.

Another MoU has been signed between the Department of Fisheries, Government of Sindh Islamic Republic of Pakistan and South China Sea Fisheries Research Institute of China Academy of Fishery Sciences for cooperation on marine fisheries and related technologies.

MoU on Global Open Trunking Architecture (Gota) for Emergency Communication and Disaster Control management in Pakistan between Ministry of IT and Telecom (National Telecommunication Corporation) and ZTE Corporation People’s Republic of China.

MOU between China Council for the Promotion of International Trade, Guangdong Sub-Council (China Chamber of International Commerce) and the Board of Investment.

MoU between Ministry of Water & Power and China Three Gorges Dam Project Corporation on Bunji Hydropower Project.

Mandviwala said that the project envisages an investment of $7 billion to $8 billion to produce 7,000 to 8,000 megawatts of hydel energy.—APP

 

[Omar1984]

Pak-China collaboration ​

PAKISTAN and China are the times-tested friends and, after collaborating in telecom and some other sectors, there is vast potential for collaboration in the field of agriculture between these two nations.

This was stated by Punjab University (PU) Vice Chancellor Prof Dr Mujahid Kamran during a meeting with Chinese delegation from Biocentury Transgene (China) Co Ltd and Guard Agriculture Research Services Pvt Ltd (Pakistan). The joint venture of both companies offered academic and research collaboration with Punjab University.

The Vice Chancellor, welcoming the offer, invited a meeting of the stakeholders from both sides to brainstorm how this collaboration could be made in the best interest of PU students, researchers and Pakistani farmers. PU team included Dean Life Sciences Dr Shahida Husnain, Dr Javed Akhtar, Dr Rukhsana Bajwa, Dr Tayyab, Dr Muhammad Jamshed and the Chinese team was headed by Dr John Liu. Dr John Liu gave a comprehensive briefing on the proposed areas for collaboration with PU.

 

[ejaz007]

36 Sino-Pak MoUs inked in one year: Zardari

* President says both countries will continue to cooperate for promotion of regional and international peace, advancement in science and technology

ISLAMABAD: Pakistan and China have identified more than 50 new initiatives for joint collaboration and signed around three dozen MoUs in the past year, President Asif Zardari said on Tuesday.

In an interview with Guangming Daily, a widely circulated newspaper in China, Zardari said Pakistan, being a longstanding friend of China, was keen to learn from its experience.

Praising Chinese growth and development, he said the country had made stupendous economic progress and achieved spectacular growth during the last 10-15 years.

“There is a lot to learn from the Chinese model of economic development, particularly the one adopted in provinces of Zhejiang and Guangdong,” he said.

He said the progress made by China in agriculture, especially in hybrid seed and optimal utilisation of water, could be emulated in other countries, including Pakistan.

To a question about his several visits to China, he said during all the visits he had focused on familiarising himself with the Chinese experience of growth and development.

“I have been impressed by all round development your great country has achieved. One is inspired by the remarkable achievements of the Chinese people and the wise stewardship of its leaders. I think there is a great deal Pakistan can learn from the Chinese experience and its development model,” he said.

“The goodwill must act as a precursor for adding greater commercial and cultural content to the economic and public diplomacy between the two countries,” he added.

He said Pak-China friendship spans half-a-century and is based on a very high degree of trust and commonality of interests.

The foundations of a strong friendship with China were laid by the visionary policies of former premier Zulfikar Ali Bhutto and he played a leading role in building the edifice of the relationship.

Bhutto’s vision as a statesman was best illustrated in his role as the architect of Pakistan’s strategic cooperative ties with China, he said.

He said the two countries would continue to cooperate for promotion of global and regional peace, advancement in the science and technology and improvement in the living standards of the people.

“This relationship will grow stronger and stronger with each passing year,” he said.

To a question about Pakistan’s stance over law and order situation in Xinjiang province, he said the government of Pakistan fully supported the Chinese government’s efforts to maintain social stability, peace and ethnic harmony not only in Xinjiang, but across the China. Pakistan fully supported China’s policy of social harmony and development, he said. “We also believe that with the unprecedented economic development in China all ethnic groups would stand to gain,” he added. app


Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

Government approves Rs 7.5bn construction of Gwadar Int’l Airport
* CDWP approves 42 projects worth Rs 107.2 billion
By Ijaz Kakakhel

ISLAMABAD: The Central Development Working Party on Thursday approved 42 national importance projects worth Rs 107.2 billion including foreign aid component of Rs 10 billion.

The 42 projects included Construction of New Gwadar International Airport (NGIA) and Allied Facilities Rs 7.5 billion including Rs 1.312 billion as FEC. The scheme envisages construction of state of the art NGIA, along with allied facilities over a piece of land already acquired measuring 4300 acres. The construction of the NGIA would be undertaken in phased programme over a 30-year period.

The airport would be developed as a green-field airport and all major components of an airport would be developed as part of this project. The officials claimed that the NGIA would be the business gateway to Pakistan through the city of Gwadar. The government had already allocated Rs 750 million in the PSDP 2009-10 for construction of the airport.

The total 42 development projects included, 27 projects in Infrastructure Sector costing Rs 49.3 billion, 13 projects in Social Sector costing Rs 57.6 billion. In addition, 2 projects relating to Commerce and Industry costing Rs 0.3 billion were approved today. Realizing the gravity and demand for energy, the government approved various projects like Establishment of 132 KV Grid Station, Bajaur costing Rs 453 million and Dargai Pall small Dam in South Waziristan Agency costing Rs 313.232 million .

These schemes would not only resolve the electricity problem of these areas but also generate employment opportunity for people of backward areas. The CDWP meeting authorized the WAPDA to undertake feasibility study of Pattan Hydro Power Project, which would generate 2800 MW of electricity.

For improvement and development of Transport Sector, Bridges across the River Indus connecting Larkana & Khairpur, linking Kandhkot located on the National Highway N-55 with Ghotki, and a bridge on River Ravi Kamalia Harrapa Rd. district Toba Tek Singh have been recommended to ECNEC at cost of Rs 17.4 billion. Construction of these bridges would provide a better link in economically backward areas and reduce the distance between major towns.

For rehabilitation of the damages in Swat and to improve the socio economic condition of the area through multi sectoral activities, i.e. provision of social infrastructure, the CDWP recommended Swat Development Package to ECNEC costing Rs 4 billion. This project would greatly help to resettle the IDPs and help generate economic activity in that area.

Population Welfare Programme, which was an on-going activity executed in all provinces, has been recommended to the ECNEC for its further extension up to year 2014 costing Rs 50 billion. The meeting, however, has set up a committee to make recommendations to devise a better delivery mechanism.

The CDWP also considered 3 concept papers namely: Disaster Management Programme Sindh, Communication System for Coastal Management in Arabian Sea (JICA) and lastly, to increase the participation of Girls Students at the Middle Schooling level and reduce drop outs in the rural area of Sindh. Deputy Chairman Planning Commission, Sardar Aseff Ahmad Ali chaired the meeting. The meeting was attended by the sponsoring agencies and the representative of provincial governments and special areas.

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

DG Khan Cement records Rs 525m net profit
Staff Report

KARACHI: DG Khan Cement has recorded Rs 525 million net profit in the year ended June 30, 2009, overcoming a loss of Rs 53 million in the last year.

The earnings per share also rose by Rs 1.96 during the year under review against Rs 0.21 loss per share in the previous year, a notice to Karachi Stock Exchange (KSE) stated on Thursday.

The aimprovement in profitability is attributed to considerable jump in retention levels (up 59 percent) during the year. The net sales of the company jumped to Rs 18 billion in the said year, compared to Rs 12 billion in the previous year. Whereas, the cost of sales also showed an increase in the same proportion of Rs 12.358 billion over Rs 10.530 billion in the previous year.

The selling and distributing expenses moved to Rs 1.871 billion against Rs 561 million in the last year. Company also incurred impairment loss of Rs 257 million on its investment in the equities.

The cumulative sales of the company remained 10 percent lower at 3.96 million tonnes during FY09 as against 4.40 million tonnes previously. On segregated basis, the company dispatched 2.38 million tonnes of cement in the local market, which is 35 percent lower when compared to 3.64 million tonnes of FY08.

Resultantly, the company lost almost 4pps in its market share at 12 percent versus 16 percent in the last year. On export front, the company sold 1.58 million tonnes of cement in FY09 as compared to 0.75million tonnes previously thus, recording massive 109 percent jump against the industry growth of 47 percent. DGKC has also enhanced its export contribution in the industry by 400bps to 14 percent from 10 percent, previously.

Daily Times - Leading News Resource of Pakistan

---------- Post added at 10:20 AM ---------- Previous post was at 10:19 AM ----------

Tameer bank declared MFB

KARACHI: State Bank of Pakistan declared “Tameer Micro Finance Bank Limited” on Thursday as scheduled micro finance bank (MFB) for the purpose of its direct membership of Clearing House with immediate effect. staff report


Daily Times - Leading News Resource of Pakistan

---------- Post added at 10:21 AM ---------- Previous post was at 10:20 AM ----------

Forex reserves increase to $14.36 billion

KARACHI: The country’s foreign exchange reserves have reached to $14.360 billion on the week ending on September 12 as compared with $14.243 billion last week, data released by the State Bank of Pakistan shows on Thursday.

The overall reserves recorded a gain of $117 millions during the last week. The reserves held by the SBP witnessed a gain of $104 million to reach $10.843 billion, compared with $10.739 billion last week.

The reserves held by the banks other than SBP witnessed a gain of $13 million to reach $3.517 billion as compared with $3.504 billion last week. staff report


Daily Times - Leading News Resource of Pakistan

 

[Jamshed]

Current account deficit down by 80 percent to $527 million in July-August

KARACHI (September 18 2009): The country's current account deficit dipped by 80 percent during the first two months of current fiscal year, mainly due to heavy home remittances sent by expatriate Pakistanis and decline in trade deficit. The State Bank of Pakistan said on Thursday that country's current account deficit declined by 2.149 billion dollars to 527 million dollars during July-August as compared to 2.676 billion dollars during the corresponding period of last fiscal year.

Business Recorder [Pakistan's First Financial Daily]